Daily Newsletter

17 October 2023

Daily Newsletter

17 October 2023

Western Midstream completes acquisition of Meritage Midstream

Meritage owns and operates a natural gas gathering and processing business in the Powder River Basin, Wyoming.

Archana Rani October 16 2023

Western Midstream Partners (WES), through one of its operating subsidiaries, has completed the acquisition of Meritage Midstream Services II.

The acquisition deal, valued at $885m, was announced in September 2023.

Privately held midstream company Meritage owns and operates a natural gas gathering and processing business in the Powder River Basin, Wyoming, US.

Its assets include around 1,500 miles of high and low-pressure natural gas-gathering pipelines with an estimated 380 million cubic feet per day (mcfd) of natural gas processing capacity, and the Thunder Creek natural gas liquid (NGL) pipeline.

Meritage also owns a 38,000-barrels-of-oil-equivalent-per-day NGL pipeline, which connects to Meritage’s processing facilities.

WES said the acquisition transforms its existing asset footprint in the Powder River Basin with a diversified customer base, expanded gathering and processing facilities, and long-term contracts backed by minimum volume commitments and acreage dedications.

In a press statement, WES said: “As previously announced, for the third quarter 2023, management intends to recommend a Base Distribution increase of $0.0125, or $0.05 annualised, resulting in a total annualised distribution of $2.30 per common unit.”

Earlier, WES said it expects the acquisition to increase its total natural gas processing capacity to 440mcfd.

WES president and CEO Michael Ure earlier said: “The addition of the Meritage assets meaningfully expands the financial and operational scale of our existing Powder River Basin footprint by adding significant producer inventory and further diversifying our growing G&P customer portfolio.

“The Powder River Basin has attracted investment from some of the largest E&P companies due to the basin’s multi-stacked pay horizon potential.”

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